HICL Infrastructure Company Limited – Completion of acquisition and partial disposal

4 April 2019 Investments
HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the completion of the acquisition of the entire interest in the Royal Canadian Mounted Police ‘E’ Division Headquarters P3 Project in Surrey, British Columbia, Canada (the “Project”) for a consideration of approximately CAD54 million.

The investment interests in the Project were acquired from InfraRed Infrastructure Fund III (“Fund III”), which held 99.9%, and from subsidiaries of the Bouygues Group which jointly held the remaining 0.1%.  This follows approval from the Company’s shareholders at the extraordinary general meeting, held on Wednesday 12 August 2015, for the acquisition from Fund III.

The Project is the Company’s third investment in Canada, and complements the other investments in its portfolio.  The acquisition price, which was funded by way of cash proceeds from the July tap issue, was in line with market pricing, as well as with comparable projects that the Investment Adviser has recently appraised on behalf of the Company.

Separately, the Company has disposed of its investment in the Ealing Care Homes PFI Project to Redwood Partnership Ventures 2 Limited, a JV between the Company and Kajima Partnerships Limited.  The net result of this transaction is to reduce the Company’s direct 84% stake to an indirect interest of 63%, generating £1.6 million of proceeds, in line with the Board’s valuation of the investment as at 31 March 2015.

As a result of this acquisition, the partial disposal and the contractual obligation due on Southmead Hospital, the Company has a current net funding requirement of £28 million.

Tony Roper, a Director of InfraRed Capital Partners Limited, said:

“We are pleased to have completed the RCMP investment acquisition, including the acquisition of the stake held by the Bouygues Group.  We look forward to our continued relationship with the client and to successful ongoing project delivery.”

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